BIL
SPDR Bloomberg 1-3 Month T-Bill ETF
Price Chart
BIL is an ETF that invests in U.S. Treasury Bills with maturities of 1 to 3 months. As a near-cash, ultra-low-risk asset, it can yield around 5% annualized income during periods of elevated interest rates. It is widely used as a cash-equivalent parking vehicle or safe-haven allocation within portfolios, offering minimal price volatility and capital preservation during times of market uncertainty.
Category
Bonds/Gold
Dividend Yield
5%
Expense Ratio
0.14%
Holdings
15
Dividend History
Top Holdings
Key Features
- •Focused investment in U.S. T-Bills maturing in 1–3 months
- •Ultra-low-risk asset suitable as a cash alternative
- •Extremely low price volatility (duration ≈ 0.1 years)
- •High liquidity with tight bid-ask spreads
- •Benefits from rising interest rate environments
Advantages
- •Backed by the full faith and credit of the U.S. government — virtually zero default risk
- •Provides stable annualized yields around 5% during high-rate environments
- •Price remains nearly flat even during equity market sell-offs, serving as a capital preservation tool
- •Extremely high trading volume and tight spreads allow easy entry and exit at any time
- •Ultra-short duration eliminates virtually all interest rate risk on bond prices
- •Ideal for short-term cash parking and as a holding vehicle during portfolio rebalancing
Risks
- •Yield decreases alongside falling interest rates, reducing the fund's attractiveness
- •Long-term total returns are significantly lower compared to equities or longer-duration bonds
- •Real returns can turn negative during periods of high inflation
- •Currency fluctuations (KRW/USD) may affect returns for Korean investors
- •Expense ratio (0.14%) is somewhat higher than comparable money market funds
Rebalancing Strategy
BIL is most effective when allocated as the "cash reserve" portion of a portfolio. Set a target cash allocation (e.g., 5–15%), move profits into BIL after equity rallies, and sell BIL to capitalize on buying opportunities during market dips. Consider a duration rotation strategy: increase BIL allocation during rate-hiking cycles and shift to intermediate-term bonds (IEF, VGIT) when rates begin to decline.
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Security Guide guideBIL Investment Analysis
BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) is a Bonds/Gold ETF comprising 15 holdings. It has an expense ratio of 0.14% and a dividend yield of 5%. It has a reasonable expense ratio.
With a 5% dividend yield, it is ideal for income investing. Reinvesting dividends can maximize the compounding effect.
BIL can play an important role in your portfolio. Due to its concentrated nature, consider combining it with other ETFs for diversification.
US ETF Investment Notes
A 15% withholding tax applies to US ETF dividends. If annual overseas stock capital gains exceed KRW 2.5 million, a 22% capital gains tax is imposed.
Exchange rate fluctuations affect returns. When the Korean won strengthens, dollar-denominated gains may decrease — consider whether to hedge currency risk.
Brokerage fees for overseas ETF trades vary. If you trade frequently, compare fees across brokerages before choosing one.